How to Handle a Bidding War to Get the House You Love
May 2nd, 2017 at 1:46 pm by Annette Masterson
In today’s market we are seeing multiple offers for properties and buyers are needing to come in with a strong offer – oftentimes over the asking price. Working with an experienced agent like myself is imperative in this market as I can help to guide you through the process of buying in a hot market. With that in mind, here are some things to remember when you find yourself in a bidding war with other buyers:
Don’t be scared of multiple offers. Some buyers automatically want to pull out when they find themselves up against competition. More than anything going against multiple buyers should comfort you that you are wanting to buy a home that others think is a good buy, too.
Cater to the seller’s needs. Your agent should find out what the specific needs of the seller are. Oftentimes more than top dollar, the sellers may want or need special concessions. Perhaps they need to close quickly but rent back until they find a home. Or they may have emotional ties to the home and find a letter and family photograph from the buyer. (It sounds crazy, but I’ve seen it help before!) At other times a seller may want a longer close period or may not want to perform repairs. Finding out what they want can put you in a situation to make a winning offer.
Determine what you’re comfortable offering. Figure out the price that, if you don’t get the home you’ll know that you gave it your best shot. But if you do get the house, you won’t experience buyer’s remorse and put yourself in a financially tight situation.
Don’t get stuck on the asking price. By looking at sold comps in the area, you can focus on the home’s actual value instead of the asking price. The house may be over or under valued. If it’s the latter, you can go well over the asking price without worrying you are over paying for the home.
Bring a strong financial argument. Cash offers will almost always win over financed offers, but if a cash offer isn’t an option for you, being pre-approved for a conventional loan with a large downpayment will give the seller more security in selecting your offer.
Keep your emotions out of the transaction. If the house in question is your dream home, by all means offer your top dollar. But also remember that everyone has a top dollar and should walk away at some point. Don’t put your family into an unfortunate financial situation in the future because your emotions get tied up in a house.
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Annette Masterson is a licensed broker with EXIT Realty in Murfreesboro, TN. She has developed one of the most successful real estate teams in Rutherford County, known as Masterson Network Homes, that specializes in new home construction and residential listings and sales throughout Middle Tennessee. You can email Annette at email@example.com or call her at 615-896-5656 for more information.